Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow, free cash flow, and free cash flow margin all improved sequentially and year-over-year.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin improved versus both the prior quarter and the year-ago quarter, reflecting a higher conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$728.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$858.0M
Cash generated by operations before capital spending.
CapEx
$130.0M
Capital spending and related asset purchases.
FCF margin
10.9%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-06-30 | $6.7B | $643.0M | $155.0M | $488.0M | 7.2% |
| 2025-09-30 | $6.5B | $1.1B | $142.0M | $951.0M | 14.7% |
| 2025-12-31 | $6.7B | $829.0M | $172.0M | $657.0M | 9.8% |
| 2026-03-31 | $6.7B | $858.0M | $130.0M | $728.0M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $431.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and free cash flow margin. This occurred even as revenue remained stable sequentially.
Higher operating cash flow was the strongest observable driver of the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin improved versus both the prior quarter and the year-ago quarter, reflecting a higher conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest relative improvement.
Monitor the trend in capital expenditure, which was lower sequentially but slightly lower year-over-year, as it directly affects free cash flow generation.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $97.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 34.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.